The state Legislative Analyst's Office released the 20-page report Monday to update lawmakers on how the rules adopted last year have affected higher education. The new standards were designed to steer students toward a better quality education by avoiding institutions with high loan default rates and low graduation rates.

The report says the tougher standards have worked largely as intended.

Among higher education institutions with large numbers of students receiving federal aid, 35 percent have been barred from receiving Cal Grant students. No state-run colleges were affected.

The report makes three recommendations to improve the system, including a new assessment for measuring default rates.